Determinants of Social Infrastructure Spending Among U.S. States

Given the importance of social infrastructure for social and economic development, government expenditures on parks and recreation, education, and public housing are examined. Drawing from punctuated equilibrium, social vulnerability, and subsidiarity principles for theoretical context, the present study investigates the factors contributing to state social infrastructure spending. Using balanced panel data on 49 U.S. states over 20 time periods and random effects regressions with year dummies, findings show that the determinants of social infrastructure are more nuanced and depend on the type of social infrastructure. Disasters affect park and recreation spending, while federal subsidiarity assistance to states benefit educational infrastructure. Also, sales tax revenue increases spending for parks and recreation, and a youthful population increases educational spending. The study shows that integrating multiple theoretical perspectives to examine broad policy areas offers a deeper understanding of multiple social infrastructure policy areas regarding how states prioritize these issues and offer recommendations.